Where credit's due

You might think it's never been easier to get a mortgage. But take a closer look at those tightly-worded application forms and it's clear that if you - or the property you've set your heart on - don't fall into one of the "tick-here" categories, you're out in mortgage no-man's-land.

Something as ordinary as being self-employed, or falling in love with a property that happens to have two kitchens, can render a would-be borrower "unattractive" or "non-standard" in the eyes of lenders.

Don't, however, be put off, even if you're initially rejected. Competition has forced the big lenders to be more flexible, and several have set up divisions to deal with non-standard mortgages. Added to these are a growing band of "sub-prime" lenders that specialise in unusual requests. As you might expect, their rates are higher - up to five per cent over the base rate.

Small, local building societies may also be worth approaching, as they tend to be more flexible. What is confusing is that each one will have a different set of lending criteria.

Ray Boulger, of mortgage brokers Charcol, advises searching cautiously, however: "What people don't realise is that every time they formally apply for a mortgage, a full credit search is made, and a note left on their file, meaning that when a subsequent search is carried out, the lender will be aware that applications have been turned down. Prime lenders could reject for that reason alone."

The self-employed


Lenders will want to see proof of a regular income. Those with less than three years of accounts, or low net earnings, contract workers, company directors and employed people with a low basic income should consider a self-certification mortgage. Here, you declare your earnings but don't have to prove them. A good credit history is important.

Who to approach Bank Of Scotland, 0845 306 0032, Abbey National, 0800 555100, Bristol & West, 0845 300 8000, Platform Home Loans, 0845 600 7100, Kensington Mortgage Company, 0808 100 4114, Cheltenham & Gloucester, 0800 226341, UCB Home Loans, 0845 950 1500.

Unusual homes


Assuming the property is habitable (a working kitchen and bathroom are normally minimum requirements), the rule of thumb is that the more oddball a place is, the less likely it is that you will be granted a mortgage. Lighthouses, Martello towers, etc, will probably be assessed on a case-by-case basis, largely influenced by a valuer's report. The borrower will have to pay for a valuation before the lender will approve the application.

Who to approach Small, local societies who may know the property in question, and the more flexible prime lenders (see above). Seek advice from an independent financial adviser specialising in mortgages. To find one near you, contact IFA Promotions, 08000 853250.

Self-build and conversions


This is a chicken-and-egg situation. You can't build a house without funds, but you can't borrow against a house that doesn't exist. Those lenders that will provide mortgages do so in stages, usually in arrears - ie, a sum once foundations are in, another for getting the building wind- and water-tight, and so on. Loan-to-value ratios range from 80% to 95%, with rates around 1% above normal. Many self-build mortgages are also suitable for the conversion of non-residential buildings. If you fall outside the requirements, perhaps because planning permission isn't in place, an expensive commercial loan may be the only option.

Who to approach Buildstore, 0870 872 0908; The Ecology Building Society, 0845 674 5566; Mortgage Express, 0500 111130; Norwich & Peterborough, 0845 300 6727.

Bad credit rating


It's not just bankruptcy and loan arrears that can render an applicant persona non grata . Even the most conscientious borrower can acquire a bad credit rating after redundancy or divorce. High street competition, however, means you can still get a loan - one that can be a stepping stone to a full-status mortgage.

Who to approach First National Mortgage Company, 020-8909 8000; Bristol & West (as before); Kensington Mortgage Company (as before); Platform Home Loans (as before) .